Microsoft to build $1 bn geothermal data centre in Kenya following Nigeria facility closure

Microsoft Corp. and G42, the leading artificial intelligence firm in the United Arab Emirates, are collaborating to construct a $1 billion geothermal-powered data centre in Kenya.

Business Insider Africa By Adekunle Agbetiloye

• Microsoft and G42 are collaborating to build a $1 billion geothermal-powered data center in Kenya

• The first phase of the project will have a capacity of 100 megawatts and is expected to be operational in about two years

• The project aims to boost cloud-computing capacity in East Africa, where power outages are common

This project marks the first phase of a multiyear initiative aimed at boosting cloud-computing capacity in East Africa, according to Bloomberg.

G42 will lead the first investment and oversee the construction of the facility in Olkaria, an area rich in geothermal resources. This is particularly advantageous in a continent often plagued by power outages and supports Microsoft’s climate goals.

The first phase of the project will have a capacity of 100 megawatts and is expected to be operational in about two years.

On Friday, Microsoft, G42, and Kenyan officials are set to sign a letter of intent, which was crafted with the assistance of the US and UAE governments.

According to Microsoft President Brad Smith, who has been visiting Kenya for nearly 15 years, where the company has 500 software developers, this is the biggest step to advance the availability of digital technology in the country's history.

What he said:

“This shows what G42 and Microsoft have the opportunity to do together that neither one of us could do separately. I frankly think it shows that what the United States and the United Arab Emirates can do together that helps bring technology to new countries, especially across Africa.”

The full project will require up to one gigawatt of electricity from the grid, according to G42 Chief Executive Officer Peng Xiao. The companies did not specify how long it would take to complete the entire project or its total cost.

In April, Microsoft agreed to invest $1.5 billion in G42, a deal facilitated by the Biden administration in a bid to limit Chinese access to AI technology. As part of the agreement, G42 committed to terminating its business relationships with Chinese companies, including Huawei, and instead use US technology.

G42's expansion into Kenya is part of the UAE's strategy to enhance its geopolitical influence in Africa. Over the past two years, the oil-rich country has committed to investing about $100 billion in the continent.